Setting up a sole proprietorship is the quickest and easiest way to formally begin a business. Even though a sole proprietorship does not offer some of the advantages of the different forms of incorporation, or of a limited liability company (LLC), it can be one of the better ways of getting a business enterprise up and running. With a little concentration and planning, setting up your business can be an exciting and enjoyable experience.

1. Decide what type of business you will operate. Since a sole proprietorship doesn&amp;rsquo;t offer any protection from legal liability for a business owner&amp;rsquo;s personal assets, it&amp;rsquo;s important that you choose a business model that limits your liability exposure. Reduce this exposure by selecting the best business methods. For example, instead of selling seafood packed on ice until purchase, invest in a vacuum sealer and sell your product in packaging that reduces the possibility of spoilage and illness for the consumer.

2. Choose your business name and register it with the appropriate local or state office. If you choose to operate your business under your own name, this step, while still worth doing, is not legally required. Operating a business under a fictitious name requires you to register to show that you are the business owner responsible for that business identity.

3. Research and obtain any necessary licensing or certifications you may need to conduct business in your city, county and state. Understand that some business types that deal with chemicals, food or certain services may pose health risks if improperly managed and will require periodic inspections or re-certification to stay in business.

4. Establish a business account where revenues from your business&amp;rsquo;s operations will be deposited and business expenses can be paid from. Keep personal and business accounts separate. You will need to easily account for all of your business&amp;rsquo;s cash flows, and intermingling your company&amp;rsquo;s money and your personal cash will just make things difficult.

5. Create a formal business record-keeping system. Track business transactions, record expenses and investments, and list donations or contributions to and from your business. Be diligent in keeping accurate business records. You will need them to complete your Schedule C (revenue from self-employment) form when you file your personal income taxes.

6. Define your financial needs and identify sources of funding. Include in your calculations the purchase of any necessary supplies and equipment you may need to conduct business. Try to minimize your cash expenditures as much as possible when starting your business. Be frugal, but understand that all businesses require investment of one sort or another. Recognize that investment capital can come from a variety of sources: bank loans, government grants, even donations and investments from friends and family.

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About the Author

Malik Sharrieff is a marketing and business communications professional in New Orleans. He has more than 15 years of experience in marketing, public relations and customer relationship management; over eight years of experience as an academic writer; and as an online journalist for two years.